Property in Slovakia for Under £80,000

With its GDP growth currently standing at around 8-10 per cent per annum representing outstanding economic progress over the last few years, combined with the strength of its domestic property market that offers investors good potential for capital appreciation, Slovakia currently has some of the best prospects for property investment in Europe. It has one of the largest car production levels per capita in the world and, because it is outperforming many of its neighbours economically, is attracting foreign investment from individuals and companies with a keen eye on the Central European market too.

Add to that the suggestion of higher increases in foreign trade as the country enters the euro monetary system in January, hence leading to a further boost of GDP growth and prosperity of the population, plus the fact that its tourism industry is gaining in momentum and with it the increased potential for rental opportunities, then Slovakia’s property market is looking healthier then ever. Property hotspots include the High Tatras and the Low Tatras, as well as cities such as Bratislava and Kosice, and towns like the historic Banska Stiavnica in central Slovakia.

Petra Gajdosikova, of Slovakia Investment Property, says, “Along with strong capital appreciation of around 15-20 per cent per annum in most areas, investors in Slovakia benefit from the ease of resale to the domestic home buyers who are the vast majority of buyers of Slovak property.” Slovakia has not suffered any consequences of the global credit crunch, says Petra. “In fact, Slovak banks have had their best year yet in 2007 due to the high growth in mortgage finance which is steadily increasing in popularity among local home buyers.”

Slovakia Investment Properties is currently marketing Velka Lomnica, a new holiday development in the High Tatras, a current property hotspot. Close to an 18-hole golf course and a planned aquapark, it offers two tennis courts, a restaurant, gym and relaxation centre. Prices start at around £78,000. “The properties are ideal as a holiday home or as a high growth investment suitable for lets,” adds Petra.

Finding property in Slovakia for under £80,000 is getting harder, however, especially if a new build is preferred or a property in one of the country’s city or holiday resort hotspots. Not only have prices been growing steadily on the back of the extremely high demand from local home buyers, but the Slovak koruna (SKK) has also appreciated by almost 50 per cent against the sterling pound over the last few years.

One area that is seeing property development at keen prices is in the Tetras Mountain range, a UNESCO world heritage site that forms a natural border between Slovakia and its neighbour Poland. A popular spot with holidaying visitors because of its beauty, its landscape ideal for hiking or skiing, and its amenities that include spas and golf courses, it is attracting Slovakian and foreign buyers keen to purchase holiday homes, investment property and, in some cases, villas or apartments for relocation.

The Tetras Mountain area retains an exclusive feel because of the limit on construction. The number of homes are closely monitored to avoid an over supply, which in turn makes property much sought-after. The area is popular with Slovak society, as well as tourists. Poprad airport is close by with regular flights from London and other cities around Europe.

Property Frontiers is currently marketing Silver Resort in the High Tetras, which is located right on the edge of the Tetra National Park and include studios from around €78,400 (approximately £63,000), one- to three-bedroom apartments from around €118,000 (£92,000) and four bedroom villas of 175 square metres in size with a price tag of close to €495,000 (£388,000). With guaranteed five to six per cent rental options available, the development is attracting investors as well as holiday home purchasers and even those looking for a very different way of life.

Caron Lockwood of Property Frontiers feels Slovakia is good for investment, and developments like Silver Resort are particularly appealing to investors. “We have an exclusive payment schedule of 10 per cent down and 90 per cent on completion for a small number of units at Silver Resort,” explains Caron. She says the scheme has worked well for investors.  “Buyers can obtain 90 per cent LTV mortgages in Slovakia which means this requires a really low cash input.”

Slovakia’s cities are seeing buoyant market activity too. Prices remain highly competitive and, in turn, capital growth is expected to be impressive over the next year or so. Specialist company Property Secrets is currently marketing two select apartment developments, one in Bratislava and the other Kosice. Prices are to be announced shortly. Emma Bell of Property Secrets is delighted by the response to the two projects so far and expects interest to be high.

“The new landmark development in the emerging Mlynska Dolina district of Slovakia’s dynamic capital Bratislava,” says Emma, “is in a pivotal location less than a half kilometres from the new Vienna to Bratislava motorway.”  Its apartments are being offered on 15/85 per cent payment terms. “One of the best available in Slovakia,” adds Emma.

The company’s luxury apartment and office development called Brewery Cassovar in the centre of Kosice has a high specification and is minutes walk from the Old Town part of the city. The airport is around 20 minutes drive. “We predict 48 per cent capital growth on these apartments before completion in 20 month’s time,” says Emma.

With the adoption of the euro now assured, a healthy economy and an increasingly buoyant tourism sector, Slovakia is emerging as one of the success stories of the recent Central European expansion.